Opening Share Trading account in Joint Names

Hi All

Has anyone opened share trading account in joint names, I have looked at NABTrading and there is this option to open in joint names, the main reason is the split loan i am going to use to fund the share investment is in joint names.
1. So if we start the account in joint names, do we have to use like equal split for both dividends and interest expenses at tax time?
2. Any other complexities of this rather than just opening in individual name.
Thanks in advance.

 

Did some search in the internet, but couldn't find any exact answer specific to Australia, most of the references are regarding the ownership when one owner dies, nothing specifically around income tax,
The biggest issue in my case is the funds i am going to invest in the shares are from a split loan (secured against my PPOR) which was drawn under both our names, so what will happen if i use those funds to invest in a trading account only under my name?
any help will be appreciated
may be @Terryw can add something.

 

You require tax advice but if drawn down in both names but only producing income in one name then only 50% of the loan interest is tax deductible to the one receiving the income. You might ask your accountant about structuring the joint account as tenants in common say 90% 10% etc to target income and tax. You could also redo the split loan to only one name as borrower but both as guarantors.

 

There is an ATO tax ruling which indicates the interest is deductible, in full, to the person who is investing if these persons are spouses. It might also help if you had a written loan agreement from the other borrower onlending to you.

 

Thanks Terry
That is great rather than redoing the split loan
When you say getting a written loan agreement, do you mean a letter or email from my wife or does it have to be something like a proper document prepared by a lawyer?
Also is there a way i can find this ATO ruling

 

It should be a proper legally enforceable agreement. Doesn't necessarily need to be drawn up by a lawyer, but it might be a good idea.

You can search the ATO website for the ruling - or view my tax tips on propertychat.com.au as I have written about this and may have mentioned the ruling number there. From memory it was from either 1993 or 2002.

 

Thanks TerryW
I will do some more search in to this,